Firstly - I’d like to apologise for the recent screw up on my blog when an update removed some recent posts. I’ve managed to get them back but not the comments. Rest assured that this is being worked on!
Now last week I was looking at volumes and wondering where the bears were. As you can see from the volume figures this week (chart below) they did appear in greater numbers. Also, the plunge does not seem to have found a bottom. To date we have retraced 38.2% from last June and I expect some buyers to be looking for support at this level, especially with the US having seem to have found a bottom with the recent rate cuts.
But for me, somehow I just don’t think it’s time to be loading up on stocks quite yet and changing from my current cash-equity allocation (although I intend to recycle some money into Genting and Guthrie. Looking for companies with good liquidity and low leverage has never been more important!). I think 1150 represents the “house of pain” (where I would consider changing my allocations at the current market state) .
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